Sun Life 2010 Annual Report Download - page 40

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The impact of the items described above on the Company’s operating earnings and operating EPS is shown in the following tables.
Reconciliation of Operating Earnings
($ millions) 2010 2009 2008
Reported Earnings (GAAP) 1,583 534 785
After-tax gain (loss) on special items
Gain on sale of interest in CI Financial –– 825
Restructuring costs to reduce expense levels –(27) –
Total special items –(27) 825
Operating earnings 1,583 561 (40)
Impact of Special Items on Diluted Operating EPS
($ per share) 2010 2009 2008
EPS – Reported (GAAP) 2.76 0.94 1.37
Net gains (losses) on special items –(0.05) 1.47
EPS – Operating 2.76 0.99 (0.10)
Our MCCSR sensitivities are forward-looking non-GAAP financial measures, for which there are no directly comparable measures
under GAAP. It is not possible to provide a reconciliation for our market sensitivities as they are forward-looking information. We
believe it is only possible to provide ranges of the assumptions used in determining those non-GAAP measures, as actual results can
fluctuate significantly inside or outside those ranges and from period to period.
Financial Performance
2010 Consolidated Results of Operations
Common Shareholders’ Net Income
Common shareholders’ net income for the twelve months ended December 31, 2010 was $1,583 million, compared to $534 million for
the same period in 2009. Operating earnings for the twelve months ended December 31, 2010 were $1,583 million, compared to
operating earnings of $561 million for the same period in 2009. In 2010, there was no difference between reported and operating
earnings. Operating earnings for the full-year 2009 excluded after-tax charges of $27 million for restructuring costs taken as part of the
Company’s efforts to reduce expense levels and improve operational efficiency. Operating earnings for the full-year 2008 excluded an
after-tax gain of $825 million related to the sale of the Company’s interest in CI Financial.
($ millions, unless otherwise noted) 2010 2009 2008
Total net income 1,685 622 857
Less:
Participating policyholders’ net income 992
Dividends paid to preferred shareholders 93 79 70
Common shareholders’ net income 1,583 534 785
Adjusted for special items(1) –27 (825)
Operating earnings (loss) 1,583 561 (40)
Basic EPS ($) from:
Common shareholders’ net income 2.79 0.95 1.40
Operating earnings (loss)(1) 2.79 1.00 (0.07)
Diluted EPS ($) from:
Common shareholders’ net income 2.76 0.94 1.37
Operating earnings (loss)(1) 2.76 0.99 (0.10)
Common shareholders’ net income (loss) by segment
SLF Canada 828 866 645
SLF U.S. 301 (465) (1,016)
MFS 208 152 194
SLF Asia 92 76 33
Corporate 154 (95) 929
Total 1,583 534 785
(1) The items not included in operating earnings are described under the heading Non-GAAP Financial Measures.
Results for the full year 2010 included $173 million related to improvements in equity markets, the favourable impact of asset-liability
re-balancing and the favourable impact of the Lincoln U.K. acquisition in the fourth quarter of 2009. Movements in interest rates
contributed $34 million to net income in 2010 as interest rate swap movements more than offset the adverse impact of lower interest
rates. These favourable impacts were partially offset by increased expense levels from business initiatives in 2010 and $49 million of
unfavourable credit impacts.
36 Sun Life Financial Inc. Annual Report 2010 Management’s Discussion and Analysis